The Restriction Of Associated Shareholders' Voting Right In Listed Companies

The shareholder's voting right can be seen as an especial power, which could decide how the company will act and how to deal. However, as we all know, absolute powers tend to corrupt absolutely, the shareholder's voting right need to be restricted, especially which of the associated shareholders. The institution about the restriction of associated shareholders in listed companies is to confine the possible misconduct of those shareholders, so as to protect the intermediate and small shareholders in connected transactions. The Corporation Law in China still has some shortage in this regime.In the first chapter, the author described the meaning of associated shareholder's voting right, took the Sihuan Corporation as an example to explain what the shortages are in current institution. In the second chapter, the author analyzed the phenomenon and the reasons of above-mentioned shortages. In the third one, the author drew on the experience of some other countries'legislation, and on the basis of which, put forward some advise about how to perfect the restriction institution of associated shareholder's voting right in listed companies.